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ChexSystems Score: 13 Facts You Should Know

Get some insight on your ChexSystems score that ranges from 100-899 and how banks and lenders use it in decision making.
chexsystems-score
chexsystems-score

What’s your ChexSystems score? More importantly, did you know you had a ChexSystems score?

ChexSystems is a consumer reporting agency just like Experian, Equifax and Transunion. And, just like the three major consumer reporting agencies, ChexSystems produces a score based on the information contained in your ChexSystems file.

But there’s a catch with ChexSystems, it only contains negative information unlike a credit report, which establishes a history of good and bad behavior.

» Open a Checking Account: No-ChexSystems Banks

What is a ChexSystems Score

A ChexSystems score can range from 100 to 899. The higher the score, the lower the risk to a potential bank, credit union, lender or credit card company.

13 Facts About a ChexSystems Score

Your overall credit and debit history is contained in your ChexSystems file which helps to calculate your ChexSystems score. Here are 13 factors that are included:

1. Delinquent or derogatory credit behavior.
2. Delinquent or derogatory credit behavior on installment trades.
3. Previous debit inquiry history.
4. Delinquent or derogatory credit behavior on trades opened last 24 months.
5. Paid and Unpaid insufficient fund items (“NSF”).
6. Excessive “NSF” charges, even though you may have covered all of those charges.
7. Checking account habits that your bank may consider negative.
8. Any kind of Fraud.
9. Uncollected overdrafts, ATM transactions or automatic payments the bank paid.
10. Abuse of Debit Card, Savings Account or ATM Card.
11. Violation of any banking rules and regulations.
12. Opening an account with false information.
13. Excessive ChexSystems Inquiries.

What companies use ChexSystems Consumer Scores

Banks, credit unions, other financial institutions, and even some credit card companies use a ChexSystems score to help determine whether they should extend a bank account or credit to you. Plus, if a bank extends credit to you, a ChexSystems report and score may be used to determine the terms.

» Dump your prepaid card: Bank accounts for bad credit

How to order your ChexSystems Score

The FCRA gives you the right to check your ChexSystems score free of charge. Or, if you’ve been denied a bank account or other product based on your ChexSystems score, that company may send you a letter containing your score.

In addition, if you are denied a bank account or job because of adverse information in your ChexSystems report, you’re entitled to a free copy of your ChexSystems report if requested within 60 days of denial.

Here is how to get your free ChexSystems score:

1. Visit the website ChexSystems.com.

2. Input basic information such as your Name, Birthdate, Current Address and Social Security Number.


3. Press Submit and ChexSystems will give you a request confirmation number and mail you a copy of your ChexSystems score.

Can a ChexSystems Score Be Improved?

The short answer is yes. But approaching the issue of improving your ChexSystems consumer score should be focused on eliminating banking habits and behavior that may be lowering your score. For instance, if you have frequent overdrafts work on balancing your account to avoid overdrafts or maintain an overdraft protection account.

If you receive a denial letter based on ChexSystems it will include key factors affecting your score. Review the key factors as these are the main elements lowering your score and dispute errors or outdated information.

There could be errors in your ChexSystem records impacting your ChexSystems score. If that’s the case, consumers have the right to dispute errors with both ChexSystems and with the bank or credit union who supplied that information. ChexSystems must work with the banks to investigate consumers’ disputes of inaccurate information on their reports.

How to Improve Your ChexSystems Score

Here are a few more actions that may help improve your ChexSystems score.

  • Stop bouncing checks.
  • Don’t overdraft your account – set up overdraft protection.
  • Don’t open or close bank accounts too often.
  • Don’t engage in any fraudulent or suspected fraudulent behavior.
  • Don’t close accounts that have a negative balance.
  • Pay any debt owed to the bank.
  • If you have paid a charged-off debt request the bank update the debt to paid or delete it.
  • Next, focus on addressing the negative remarks on your report which could be dragging our score down.
  • If you’ve got a negative balance, for example, pay off anything you owe to the bank to clear the debt.

More ChexSystems Resources

  • Banks That Don’t Use ChexSystems – Take a look at our list of banks that do not use ChexSystems for a new checking account.
  • EWS (Early Warning Services) – EWS is similar to ChexSystems and can prevent you from opening a checking account.
  • Check your ChexSystems Report – Unsure what information exists in your ChexSystems report? Learn how to find out.
  • ChexSystems Scores – Did you know that you have a ChexSystems score similar to a credit score? Find out how to get yours.
  • Account Abuse – Find out why ChexSystems often reports customers for account abuse with no real explanation of what that notation means.
  • Second Chance Banking – Take control of your financial future with our list of the 10 best banks that offer second chance checking accounts.

Explore More

Disclaimer: A OneUnited Checking Account is required to apply.

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